Use coco levy fund for its intended purpose - FROM A DISTANCE by Carmen N. Pedrosa

The coco levy fund must be used for the purpose it was intended and nothing else. I realize that not all coconut farmers are poor, but the coco levy fund victimized all those who planted coconuts. One coconut farmer, Bayani Caparros, may not have been poor and ignorant but he, too, was a victim. The introduction of the coconut levy and its misuse victimized all in the industry. The heart of the problem remains: It is those on the lower rungs of the totem pole who bore the heaviest brunt and they are not able to write this column or complain about their plight.

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A coconut farmer replies: Bayani M. Caparros UPS-5 Sucat, Parañaque mail to: [email protected] writes:

My personal interest in and knowledge of the issue follows: My personal interest lies in the fact that I own some small coconut lands in the island of Alabat, province of Quezon. Marcos’ Presidential Decree 276 of 1973 was issued to collect from coconut farmers a certain sum of money based on the sale of their coconut products – mostly copra – to establish a fund to help the coconut industry. Between 1973 and 1977, I was buying copra from coconut farmers in Alabat Island and selling them to wholesale buyers in Siain (now Plaridel), and Atimonan, Quezon. The wholesale buyers gave me what was known then as CLF receipts for every hundred kilos of copra I had sold. In turn, I gave the CLF receipts to coconut farmers on the same basis. Obviously, the wholesalers already deducted the levy from my proceeds. I guess the wholesalers sold their copra to coco oil millers and exporters of raw copra who in turn obtained the coco fund receipts from the administrator.

Who sold copra to me? They were either the small coco landowners who farmed their own land, or the tenants of the coco lands. In Alabat Island, where the biggest coconut land could be 100 hectares, the sale of the coconut product harvests is divided between the owner of the land and the tenant, sometimes on 50-50 basis or 60-40 in favor of the owner. In some cases, the landlord hired workers temporarily only during harvesting. In other areas of Quezon province, I do not know how they divide the proceeds, or in the case of large ownership I do not know if the workers or tenant received a share or some form of compensation. Of course if there was no tenant, CLF receipts was owned by the landlord. On this basis and in my view, the ownership of CFL is divided between the owner and the tenant of a coconut land. However, it could be argued that whoever possesses the CLF receipts partly owned the CLF.

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(I worked abroad from February 1977 to July 2000, and did not keep abreast of the status of the CLF.) Recently, I have read that the holders of the coco fund receipts sold the CLF receipts to Cojuangco and company, and therefore, this complicated the issue on the ownership of CLF. I believe it is here where the ownership claim of the Cojuangco group hinges. It is on this basis that Cojuangco et al. claims 20 percent ownership of the SMB shares of stock. But it was possible that some of CLF receipts were withheld by oil millers and copra exporters and were not issued to the downward agents and hence to coconut farmers!

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So who owns CLF? I think that it is owned by the coconut industry as a whole. Any plans to do something about it should be for the benefit of the coconut industry, and not for any particular person or specific organization! In my view, it is best to sell the shares in UCPB, SMB and other holdings and then buy government bonds where it is fully secured by the Philippine government and the returns are high and better than bank deposits or from the corporate dividends. The bonds should be held by a government entity, perhaps the Central Bank as the Trustee, and the earnings managed by a group, CLF Managers (CLFM), under the President of the Philippines, or even under the Central Bank Governor who is independent. (CNP note: In fact there is at present an agency that could be used for the purpose – CIIF – The Coconut Industry Investment Fund. The trouble is that it is being sidestepped for reasons known only to the persons concerned.)

The earnings would be appropriated as follows: Pay coconut land owners and tenants a certain sum of money to be ascertained by CLFM, based on sales of coconut products also to be defined by CLFM, hence, this a sort of price subsidy to maintain the price of coconut products, and a sort of return of their original investment in the beginning. For research and development of new coconut products, of better coconut oil, of new breeds of coconut trees, and integration of coconut oil with diesel fuel for automotive applications, hence this will augment the efforts of the Philippine Coconut Authority. For international marketing, international advertising, and international promotion of all new and current coconut products, e.g. combating the issue of bad elements against the coconut oil. Establishment of an Internet web site for Philippine coconut products, and if there is surplus money, it should be used to augment the subsidy to the coconut land owners and tenants. When the bonds mature, the proceeds will be used to buy a new series of government bonds. I suggest that Prez GMA declare once and for all the CLF is public fund and study and/or follow my ideas above.

Who’s minding the store at the PMO? My informant at the Privatization Management Office (the former Asset Privatization Trust) is anxious about conditions there after EDSA II. He says something has to be done quickly about the inability of the government machinery to act on sequestered companies and entities the Privatization Management Office (the former Asset Privatization Trust) headed by a Renato Valdecantos who was appointed by former President Estrada. This office is directly under the Department of Finance and the Finance Secretary should perhaps look here for scarce funds. Proceeds of the sale of the disposable government assets in corporations to private investors can help reduce the P225 billion budgetary deficit, he adds. But it appears Valdecantos – just like his former boss – is hiding on technicalities like "the mandate of the PMO has expired" and tosses questions to the Presidential Commission on Good Government instead. If that is the case, steps must be immediately taken to boot out Valdecantos and the entire PMO. There is no reason for the taxpayers to support a non-performing office.

This could also entrench the Erap "boys" or disastrously delay changes in the management of these government assets in private firms or sequestered corporations and properties. Of course, the Erap appointees want to extend their tenure in these offices, like the publisher and the editors of the Philippine Journalists, Inc. publishers of the People’s Journal and People’s Tonight. The publisher claims he is a cousin of President Arroyo and tells underlings there is nothing to fear. Yet, this source adds it is well known they were all staunchly loyal to the "president-on-leave" Erap and can spread disinformation on the government, in the guise of editorial contents or "truth and technicalities." So what else is new?

The message on Senator Miriam Santiago has just insulted you. It is going the rounds among E-mail users. Mine originally came from Shirley J. Uy [email protected]:. and passed on. Here’s what it said.

Hi, to those who were not able to watch I-Witness (including me) where Miriam Santiago was interviewed by Vicky Morales, here’s an excerpt which is quoted verbatim from Rina Jimenez David’s column.When Miriam was asked how she felt about public reaction to her "no"vote that fateful night of Jan 16: "Why should I be bothered by these Filipinos who are raising these protests against me? These same Filipinos who have not even stepped foot on Harvard or Oxford, I would be bothered if my professor in Cambridge were to take exception to my legal interpretation of a judicial matter. But to be bothered by a Filipino who may not even know that a Harvard exists, who can’t even pass the UP entrance test, who wouldn’t even understand discussions of such a high level even if they tried, why should I be bothered? I have no time to listen to this species of lower life forms."

I remember that at the height of her popularity in 1992 she used language of this sort and she was praised and catapulted to popularity that almost landed her the Presidency. That is why I am not surprised that she continues to be insulting. See?. Insulting Filipinos brought her places. And again, circa 2001, I read somewhere that despite her vote against opening the envelope, she still enjoys popularity, according to a survey. I am afraid all this gnashing of teeth is useless until she is not voted as senator in May. Then and only then will she get the message that Filipinos do not like being abused.

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My e-mail is [email protected]